Charter Hall Group · ASX:CHC
Charter Hall — Investor Presentation (February 2017)
39 slides from Charter Hall's investor presentation, Feb 2, 2017
Slide 1: Investor Development Showcase
Charter Hall Group Investor For personal use only Development Showcase 2 February 2017
Slide 2: Agenda
Agenda For personal use only 1 Welcome and Introduction 2 Development Activity 3 Office Development 4 Industrial Development 5 Q&A Andrew Borger Andrew Simons David Harrison Head of Office Development National Manager - Industrial Managing Director & Services Projects/Development Group CEO 1
Slide 3: Development Activity Overview
Development Activity Overview For personal use only • Development opportunities undertaken to enhance both income yield and total returns for managed funds • In-house development skills are a core competency • Committed projects / development pipeline includes 45 office, industrial and retail projec
Slide 4: Group Development Projects Overview
Group Development Projects Overview For personal use only 2017 2018 2019 2020 333 George Street, 1PSQ, WSU, 900 Ann Street, Raine Square, Perth, GPO, Adelaide, SA 11BCR, Newstead, 130 Lonsdale Street, Sydney, NSW Parramatta, NSW Brisbane, QLD WA QLD Melbourne, VIC Secret Harbour, WA Mt Hutton Plaza,
Slide 5: Development
Office Development For personal use only Andrew Borger Head of Office Development Services
Slide 6: Historical Track Record: Delivering Prime Office Developments
Office Historical Track Record Delivering Prime Office Developments For personal use only Strong track record in creating and delivering high performing projects for tenant customers Asset Year Market Size Tenant Space 207 2004 Sydney North Shore 20,000 Hutchinson Telecom Bushells 2004 Sydney CBD 12
Slide 7: Historical Track Record: Delivering Prime Office Developments
Office Historical Track Record Delivering Prime Office Developments For personal use only Zone, Olympic Park, Sydney 275 George Street, Brisbane 171 Collins Street, Melbourne 570 Bourke, Melbourne SQM 42,500 SQM 40,000 SQM 33,000 SQM 50,700 Commonwealth Bank Telstra, Queensland Gas BHP, Evans and Pa
Slide 8: Office Development Objectives
Office Office Development Objectives For personal use only Grow Sustainable Pipeline Implementation Grow development investment through building a A. Origination national portfolio of projects, located in core • Site selection markets to create high quality investments for • Floor space optimisation
Slide 9: Pillars of Strategic Growth Moving Forward
Office Pillars of Strategic Growth Moving Forward For personal use only 1. Add Value 2. Masterplan Strategic 3. Originate Existing Portfolio Acquisitions • Master-plan • Identify medium to long term existing • Focus on: • Identify strategic adjoining land assets • Off market acquisitions • Identify
Slide 10: Project Examples: Add Value to Existing Portfolio
Office Project Examples 1. Add Value to Existing Portfolio For personal use only Raine Square, Perth Realise the potential of 1.2 HA existing asset: • Convenience Retail • Entertainment • Dining • Major Specialty Anchors • Health Club • Conference • Upgraded Office Lobbies 9
Slide 11: Project Examples: Masterplan New Strategic Acquisitions
Office Project Examples 2. Masterplan New Strategic Acquisitions For personal use only 55 King Street, Melbourne Overview No. levels total 27 Typ Tower NLA (sqm) 930 Typ Podium NLA (sqm) 1,460 Total Office NLA (sqm) 27,700 Retail Glar (sqm) 800 Carparks 42 Total GFA (sqm) 44,150 10
Slide 12: Project Examples: Originate
Office Project Examples 3. Originate For personal use only Wesley Place, 130 Lonsdale, Melbourne 11BCR at Gasworks - 11 Breakfast Creek Road, Newstead, Brisbane 11
Slide 13: Project Examples: Education Sector
Office Project Examples 4. Education Sector For personal use only Add Melbourne Uni image from front page 1PSQ, Western Sydney University, Parramatta – Completed Melbourne University - Open Market Tender 12
Slide 14: Project Examples: Partnering
Office Project Examples 5. Partnering For personal use only 900 Ann Street, Brisbane Construction progress as at December 2016 Artist’s Impression 13
Slide 15: Project Examples: Infrastructure/Transit Orientated Developments
Office Project Examples 6. Infrastructure/Transit Orientated Developments (TOD) For personal use only Sydney Metro Melbourne Metro Cross River Rail Brisbane Perth City Link Source: Respective state government websites Note: Charter Hall is not developing infrastructure projects 14
Slide 16: Completed Projects George Street, Sydney
Office Completed Projects 333 George Street, Sydney For personal use only Overview Date started 2014 Date completed 2016 On completion value ($AUD) $325 million Grade A Ownership 100% CPOF Total NLA (sqm) 14,600 Office NLA (sqm) 12,500 Retail NLA (sqm) 2,100 Typical floor plate (sqm) 970 WeWork, Cly
Slide 17: Completed Projects George Street, Stack Plan
Office Completed Projects 333 George Street, Stack Plan For personal use only 16
Slide 18: Completed Projects 1PSQ, Parramatta Square
Office Completed Projects 1PSQ - 1 Parramatta Square, Western University Campus For personal use only Overview Date started 2014 Date completed 2016 On completion value ($AUD) $252.5 million Grade A 50% - Charter Hall Direct Office Fund Ownership 50% - Charter Hall Prime Office Fund Total NLA (sqm)
Slide 19: Planned Projects Wesley Place, Lonsdale Street, Melbourne
Office Planned Projects Wesley Place, 130 Lonsdale Street, Melbourne For personal use only Overview Start date 2017 Target completion 2019 - 2020 (forecast) On completion forecast $600 million ($AUD) Grade A Ownership 100% CPOF Total NLA (sqm) 60,000 Typical floor plate (sqm) 55,000 Total car spaces
Slide 20: Planned Projects Wesley Place, Lonsdale Street, Melbourne
Office Planned Projects Wesley Place, 130 Lonsdale Street, Melbourne For personal use only 130 Lonsdale 140 Lonsdale 19
Slide 21: Planned Projects Raine Square Retail
Office Planned Projects Raine Square Retail For personal use only 20
Slide 22: Office Development Pipeline
Office Office Development Pipeline Overview For personal use only Number Total Lettable Area of projects 240,000+ sqm 7+ Total Value $2.02 Billion 21
Slide 23: Development Pipeline
Office Development Pipeline Overview For personal use only 2017 2018 2019 2020 333 George 1PSQ, WSU 900 Ann Street, Raine Square, GPO, 11BCR, 130 Lonsdale St, Street, Sydney Parramatta Brisbane Perth Adelaide Newstead Melbourne Committed Secured 22
Slide 24: Industrial Development
Industrial Development For personal use only Andrew Simons National Manager – Industrial Projects/Development
Slide 25: Industrial Historical Track Record
Industrial Historical Track Record Delivering Industrial Developments For personal use only Project State PC Financial Year GLA Completion Value ($m) Current Value ($m) 15 Long St, Smithfield (Northline) NSW 2014 16,516 $23.8 $30.2 2-30 Saintly Drive, Truganina VIC 2014 46,910 $44.8 $55.5 61 Diesel
Slide 26: Industrial Development WIP & Pipeline
Industrial Industrial Development WIP & Pipeline For personal use only 175 hectares 55 hectares $4201 million Total Development Land Committed Developments Completed Development End Value Committed1 Land Bank (GLA) Perth 10,000sqm Sydney Melbourne 75,000sqm 155,000sqm Sydney Total Total 255,000sqm M
Slide 27: Chullora Logistics Park Case Study
Industrial Development Case Study Chullora Logistics Park – 2 Hume Highway, Sydney For personal use only 26
Slide 28: Chullora Logistics Park Case Study
Industrial Industrial Development Case Study Chullora Logistics Park – 2 Hume Highway, Sydney For personal use only • Former Fairfax printing and distribution facility 17km from the CBD, constructed mid 1990’s • Charter Hall identified Chullora as a highly land constrained location ideal for metropo
Slide 29: Chullora Logistics Park Case Study
Industrial Industrial Development Case Study Chullora Logistics Park – 2 Hume Highway, Sydney For personal use only • Size: 10 hectare site • Potential for 52,000sqm of GLA • End value of $125m • Lion Nathan is a 10,000sqm cold store on a 10 year lease • Fastway Couriers is a 21,500sqm distribution
Slide 30: Drystone Industrial Estate Case Study
Industrial Development Case Study Drystone Industrial Estate – 441 Dohertys Road, Truganina, Melbourne For personal use only 29
Slide 31: Drystone Industrial Estate Case Study
Industrial Industrial Development Case Study Drystone Industrial Estate – 441 Dohertys Road, Truganina, Melbourne For personal use only • 85ha estate • Initial site purchased from receivers following commitment to The 25,000sqm Woolworths Meat Processing Facility • Strategic acquisition of adjoining
Slide 32: M5/M7 Logistics Park Case Study
Industrial Development Case Study M5/M7 Logistics Park – 290 Kurrajong Road, Prestons, Sydney For personal use only 31
Slide 33: M5/M7 Logistics Park Case Study
Industrial Industrial Development Case Study M5/M7 Logistics Park – 290 Kurrajong Road, Prestons, Sydney For personal use only • Former market gardens with 5 different owners • Becoming a strategic logistics location due to proximity to Moorebank Intermodal and Badgerys Creek Airport • Secured a pre
Slide 34: M5/M7 Logistics Park Case Study
Industrial Industrial Development Case Study M5/M7 Logistics Park – 290 Kurrajong Road, Prestons, Sydney For personal use only • Size: 15 hectare site • Potential for 80,000sqm of GLA • End value of $135m • Bracknells Warehousing is a 15,000sqm facility secured on a 7 year lease • BAM Wine Logistics
Slide 35: Smithfield Industrial Estate Case Study
Industrial Industrial Development Case Study Smithfield Industrial Estate – 17 Long Street, Smithfield, Sydney For personal use only 34
Slide 36: Smithfield Industrial Estate Case Study
Industrial Industrial Development Case Study Smithfield Industrial Estate – 17 Long Street, Smithfield Sydney For personal use only • Land constrained in-fill site located in the heart of Smithfield’s Industrial area • Purchased from power authority with Building 1, 17,000sqm pre-leased to Northline
Slide 37: Questions
For personal use only Questions
Slide 38: Contact us
Contact us For personal use only David Harrison Phil Cheetham Managing Director & Group CEO Head of Listed Investor Relations Charter Hall Group Charter Hall Group T: +61 2 8651 9142 T: +61 2 8651 9214 david.harrison@charterhall.com.au philip.cheetham@charterhall.com.au DISCLAIMER looking statements
Slide 39: Office addresses
Sydney Head Office Level 20, No.1 Martin Place Sydney, NSW, 2000 T: +61 2 8651 9000 For personal use only Melbourne Level 12, 570 Bourke Street Melbourne VIC 3000 T: +61 3 9903 6100 Brisbane Level 22, Northbank Plaza 69 Ann Street Brisbane QLD 4000 T: +61 7 3228 2000 Perth Level 5, St Georges Square
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